When a death occurs, decisions need to be made quickly, but most families don’t know their loved one’s end-of-life wishes. Planning a meaningful service or celebration of life without any guidance can lead to emotional and financial stress for those left behind. 

According to the National Funeral Directors Association, while most Americans recognize the importance of pre-planning, only 17.3% of Americans aged 40 and older have taken action to pre-plan their funeral. If you’re among the majority who haven’t started this process, don’t worry—this guide is here to help.

Whether you’re exploring options for yourself or preparing on behalf of a loved one, this article will walk you through the essentials of funeral pre-planning. You’ll learn how pre-paid funeral plans work, the benefits they offer, and how they fit into a broader end-of-life plan.

What is a Pre-Paid Funeral?

A pre-paid funeral is an arrangement made in advance with a funeral home. It involves paying in advance for cremation or traditional burial services and their accompanying costs. By setting up a pre-paid funeral plan, you ensure that your wishes are clearly outlined and paid for, sparing your family from a last-minute scramble or unnecessary emotional strain. This allows the funeral home to act swiftly when the time comes.

Pros

1. Paid Upfront 

By planning, you ensure your wishes are paid for, alleviating the financial burden on your family. And when the time comes, your loved ones will know exactly what you want. This is particularly helpful for those who prefer a viewing and burial, as time-sensitive arrangements often require quick decision-making. 

2. Complete Paperwork in Advance

Preparing all necessary documents helps streamline the funeral process when you pass. You can complete the paperwork now, enabling the funeral home to obtain permits and death certificates on your behalf later. This ensures those left behind can properly grieve without focusing on paperwork. 

3. Reduce Stress on Loved Ones

Families are rarely equipped to handle the many decisions and actions required following a death, whether expected or sudden. Having a plan in place can mitigate potential family conflicts, allowing loved ones to focus on supporting each other during this challenging time.

4. Fixed Price

With funeral costs steadily increasing year after year, a pre-paid plan locks in current prices. Many funeral homes offer a range of plans and payment options to fit various budgets. 

Cons

1. Inflexible 

If your chosen funeral home or crematory goes out of business, your plan may not be protected. Carefully weigh your options when choosing a provider and ask questions about what would happen due to unforeseen circumstances.

2. Life Changes

Occasionally, life changes may alter your end-of-life plans. For example, a couple who pre-arranged to be buried together might need to adjust their plans if one spouse passes away and the surviving partner remarries. Alternatively, someone may choose to be laid to rest with their new spouse instead of in the family plot. 

3. Facility Closure

Though rare, a funeral home may shut down for various reasons. Researching reputable funeral homes and understanding their policies is essential to mitigate this risk. Browse our list of funeral providers to find a trustworthy partner. 

4. Location

If you plan your funeral while living in one location, your chosen funeral home may no longer make sense if you move. Changes in circumstances may make your initial plans inconvenient later on. 

How Much Does a Pre-Paid Funeral Cost?

The median cost of a funeral in the United States is $7,848. This varies depending on your choice of burial or cremation, location, and services. Year after year funeral costs continue to rise, but when you pre-pay for a funeral you can lock in current pricing.

How to Pre-Pay for a Funeral

There are a few ways to fund a funeral in advance. Each method has its advantages and disadvantages. Take a look at some of the most common options below. 

• Advance Payment: Pay outright to a funeral home or crematory. This is the simplest option using cash, check, or credit card. 
• Funeral Trust: A funeral trust is a legal agreement that ensures that the funeral home is paid for your funeral upon death. The agreement is between three parties—the trustor (planner), trustee (bank or funeral home), and beneficiary (funeral home). 
• Life Insurance: An insurance policy purchased to provide financial compensation to your loved ones upon your death. Unless your pre-need contract guarantees the costs of a funeral, your survivors may need to pay some of the expenses.
• Funeral Insurance: An insurance policy specifically purchased for funeral arrangements. If the costs are guaranteed, the insurance should cover all expenses. 
• Savings Account: A bank account designated to pay for funeral expenses. Make sure you tell your family that this account exists and provide the information for them to access and use the funds.

Questions to Ask Funeral Providers

• Are there any costs not covered in the contract that would need to be paid later on? If so, who’s responsible for them?
• Are the prices in the contract guaranteed at the time of service?
• Can the arrangements be transferred to another funeral home or cemetery if I relocate?
• What happens to the contract if the funeral establishment closes or is sold?
• Who manages the pre-need funds, and how can I contact them?
• Is it possible to cancel the contract, and if so, what are the penalties?

Veteran Pre-Paid Funeral Benefits

Veterans are entitled to VA burial benefits that include allowances to help cover burial, funeral, and transportation costs. According to the U.S. Department of Veterans Affairs, spouses and dependent children are eligible too. Veterans are entitled to burial in a VA National Cemetery as well as a private cemetery. 

• VA National Cemetery: Includes opening and closing of the grave, a government-provided burial liner, headstone, and perpetual care of the gravesite in a National Cemetery. 
• Private Cemetery: Receive a government-provided headstone, marker, or medallion, a burial flag, and a Presidential Memorial Certificate.

How to Find a Funeral Provider

While Google is a common starting point, results may be influenced by ads and algorithms rather than quality. Here are four alternative ways to find reputable pre-paid funeral plan providers. 

1. Better Business Bureau: The BBB offers accreditation and ratings for businesses, providing confidence in their ethical practices. Search the BBB for cremation providers near you and check their ratings from A+ (highest) to F (lowest).

2. Consumer Advocacy Groups: Organizations like Funeralocity allow you to search and compare prices and services from various providers in your area, helping you make informed decisions.

3. Better Place Forests Partners: We partner with reputable funeral homes, crematories, and other end-of-life providers to help deliver a green final resting place in a protected forest.

Start Planning Today

Planning now allows us to live more presently knowing that our loved ones are taken care of in the future. Dive deeper into planning with our Comprehensive Funeral Planning Guide. From organizing the service to selecting a final resting place, the guide will help you create the legacy you want to leave behind.